The housing market is booming, and buyers are desperate to get their hands on a home. However, you are concerned that you will not be able to save such a large sum of money to purchase a property. In this article, I will tell you some of the simple ways to save money to buy a property.
Save On Shopping
It might not be your favorite thing to do buy a property but if you’re trying to save up for a down payment, it’s important that you are smart about where and when you shop. Try creating an organized list of things you need before setting foot in any stores. If there’s an item on your list that can be bought online or at another store nearby don’t bother heading out.
Avoid keeping up with sale cycles at all costs they’re designed to lure you into spending more than necessary because people tend not to wait until items go on sale before buying them.
And if there’s something on your list that can’t be found elsewhere, think hard about whether or not it really needs replacing maybe it just has some life left in it yet.
Save On Bills
Having higher bills and debt can be tough on any budget, but it’s especially bad for property investors. The reason is that as an investor you need to pay yourself first, in order to set money aside for your investments. This means cutting back on high-cost essentials such as electricity or phone bills.
Start An Investment Account
If you don’t already have one, starting an investment account is an excellent way to accrue some extra savings. If your employer offers a retirement plan sign up for it and maximize your contributions however much they are. If not, use something like an Individual Retirement Account (IRA) or Roth IRA.
IRAs are funded with pre-tax dollars and allow your investments to grow tax-free until withdrawals begin.
Cut Back Your Social Life
This one is pretty difficult for most people, but if you want to save up for that house or property of your dreams then it’s going to take sacrifice. Cut back on eating out at restaurants or going for drinks with friends. You can still see them by inviting them over or going around their houses instead.
To really keep costs down cook in bulk and store in portions so that you can make multiple meals with one set of ingredients.
Take Up Freelance Jobs
Building up your freelance business is another way of generating income on an ad hoc basis. This is one of those ways that won’t make you rich but it will also take up a lot less time than working in an office or retail space, so there are obvious advantages if you’re looking for part-time work or something where taking time off can be accommodated easily.
Make A Budget
If there’s one word that can be used to describe finances, it’s complicated. You have a myriad of expenses from health insurance and groceries to electric bills and car payments.
With so many things in play it can be difficult to know where your hard-earned dollars are going each month much less how much wiggle room you have when it comes time for fun things like buying cars or taking vacations.
If your goal is to have enough cash for a down payment and closing costs on your next home, focus on putting away an amount each month that equals 20 percent of your monthly gross income. If you earn $6,000 per month, try setting aside $1,200 or 20 percent of that each month.
Setting aside even small amounts regularly will add up over time and could be all it takes to put you in a position where buying your first home is actually feasible.
Ask For Help
While it’s noble to want to save every dollar on your own, if you’re dead set on getting into that first home, make your goal public. Ask friends and family for donations instead of gifts or coordinate a charity event where your organization saves up money towards buying a property.
Just remember don’t lose sight of what’s important (saving!) when it comes to spending and doesn’t spend beyond your means just because you can ask for donations.